Core Viewpoint - EOG Resources, Inc. is expected to report second-quarter 2025 results on August 7, with earnings per share estimated at $2.20, reflecting a 30.4% decline year-over-year [1][8] Earnings Performance - In the last reported quarter, EOG's adjusted earnings were $2.87 per share, exceeding the Zacks Consensus Estimate of $2.74, driven by higher production volumes [1] - EOG has consistently surpassed the Zacks Consensus Estimate in the past four quarters, with an average surprise of 6.02% [1] Revenue Expectations - The Zacks Consensus Estimate for revenues in the upcoming quarter is $5.43 billion, indicating a 9.8% decrease from the previous year [2] Production and Operational Factors - EOG is anticipated to have stable performance in Q2 2025, supported by productive acreages in key oil shale plays like the Permian and Eagle Ford, along with numerous untapped high-quality drilling sites [3] - However, the company is facing margin pressure due to lower commodity prices, which have negatively impacted upstream profitability despite steady production levels [4] Financial Strategy - EOG has reduced its 2025 capital expenditure budget by $200 million, indicating a cautious investment approach amid uncertain pricing and demand trends [4] - The company is also dealing with higher financing costs related to its $5.6 billion acquisition of Encino Acquisition Partners, which added approximately $3.5 billion in new debt [4] Earnings Outlook - Current analysis suggests that EOG may not achieve an earnings beat this quarter, with an Earnings ESP of -0.89% and a Zacks Rank of 3 (Hold) [6]
EOG Resources to Report Q2 Earnings: Here's What You Need to Know